Foreign Interest in Boston’s Commercial Real Estate
New direct flights to and from Boston Logan International Airport have caused foreign investors to take a closer look into what Boston has to offer. These direct flights make it easier and more convenient for investors to come to Boston to evaluate investments and monitor performance. With increasing access to the city, Boston is now ranked 3rd among U.S. cities with the most foreign investors.
“Foreign buyers review and/or make offers on nearly every mid- and large-size asset in the region’s core investment areas”, according to Bisnow. Currently accounting for around 40% of Boston’s office sales, foreign purchases of commercial space is expected to continue to rise. The influx of foreign investors into the city has expanded the pool of buyers putting upward pressure on prices. Due to the fact that multifamily occupancy levels have not fallen below 90%, the high price owners can charge for rent, and manageable property sizes, foreign buyers find Boston to be a smart place to invest.